Data Center Transformation Market Size (2024 - 2029)

Data Center Transformation Market Analysis

The Data Center Transformation Market size is estimated at USD 19.29 billion in 2024, and is expected to reach USD 12.33 billion by 2029, growing at a CAGR of 9.35% during the forecast period (2024-2029).

Data center providers across the globe are gradually moving towards data center transformation in order to increase overall efficiency whilst reducing operational costs. Owing to the rapidly rising adoption of cloud, Ineternet of Things (IoT), and big data analytics across various enterprises as a part of their digital transformation strategy, the burden on the data centers is also increasing, leading to the growth in the data centers globally.

• Moreover, data center traffic across the world is also increasing, considering the number of increasing communicating devices and more enterprises switching to software-as-a-service (SaaS)-based applications, as forecasted by Cisco, which will also drive the market.
• With the increasing reliability and the increase in the number of data centers around the world, data center providers are finding it difficult to maintain consistency and operational efficiency
•  Demand for data center services increased in many sectors which are dependent on digital infrastructures and this has resulted in an increase in the demand for Data Center Network Services. The need for data centres is increasing as a result of the rising number of enterprises and education institutions around the world who are Internet based, which means that they have to provide required program availability and data security.
• Energy efficiency considerations are also gaining importance among data centers since energy accounts for almost 40% of total costs (according to network strategy and technology company Ciena). Infrastructure management, as a part of the data center transformation, is expected to gain traction over the years, considering the attempt to increase energy efficiency as a cost-saving measure.
• The market for data center transformation was positively affected by the COVID 19 pandemic. Increasing awareness of the advantages provided by cloud computing to deliver a high security, reliable IT infrastructure and growing demand for building local data centres has also helped drive Data Centres growth.

Data Center Transformation Industry Segmentation

The process of changing a data center in order to enhance its general functionality and performance is known as data center transformation. Some experts define and characterize data center transformation as large-scale change programs that affect many important aspects of data center use, such as hardware configurations, users, and business processes.

The data center transformation market is segmented by service (consolidation, automation, optimization, infrastructure management), level of the data center (tier 1, tier 2, tier 3, Tier 4), end user (data center providers, enterprises [BFSI, IT and telecom, retail, healthcare, manufacturing, aerospace, defense, and intelligence, and other end-users]), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).The market sizes and forecasts are provided in terms of value (USD) for all the above segments.